What are EU financial instruments?

This support is channelled through reputable financial intermediaries such as banks, lessors, mutual guarantee societies, microfinance providers, and venture capital funds, who are closer to the final beneficiaries and are well qualified to judge their needs.

Decisions to provide loans, guarantees, or venture capital are made by the local financial institutions. The exact financing conditions (such as the amount, duration, interest rate, and fees) depend on the financial institution.

EU financial instruments are market-driven – there are no country allocations and the availability of funding depends on the interest of local financial institutions taking part in the scheme. It is the financial intermediaries who create individual products suited to the needs of SMEs in their market.